Insurance Terminology and Concepts, Exams of Public Policy

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Florida Test Study Guide - Public

Adjusting 3-20 (Set 1) questions with

complete solutions

Those |who |are |eligible |for |coverage |under |the |Florida |Automobile |Joint |Underwriting |Association | are? |- |correct |answer |-Military |Personnel | A |non-resident |owning |an |automobile |in |Florida A |non-resident |subject |to |Florida |no-fault |law A |forcible |entry |into |locked |premises |and |the |carrying |away |of |the |property |of |others |is |a | definition |of: |- |correct |answer |-Burglary The |inland |marine |coverage |form |that |covers |clothing, |cameras |and |other |portable |property |worn | and |carried |by |tourists |and |travelers |is |a: |- |correct |answer |-Personal |effects |floater A |residual |market |to |alleviate |the |temporary |unavailability |of |property |insurance |coverage |in | significant |portions |of |Florida |(e.g. |homeowners |face |non-renewal |or |cancellations) |- |correct | answer |-Residential |Property |& |Casualty |Joint |Underwriting |Association |for |property |owners. What |does |the |property |insurance |term |"improvements |and |betterment" |apply |to? |- |correct | answer |-Real |Property The |penalty |imposed |upon |a |Florida |licensee |who |violates |a |cease |and |desists |order |issued |by |the |CFO: |- |correct |answer |-$50,000 |Fine What |is |amount |is |personal |property |used |for |business |purposes, |under |a |Homeowners |policy | covered |up |to |- |correct |answer |-up |to |$2500 |on |premises up |to |$1500 |off |premises If |a |replacement |costs |exists, |but |the |insured |has |a |policy |for |only |50% |of |the |replacement |cost, | what |percentage |will |the |insured |received |for |the |loss? |- |correct |answer |-50% |of |the |settlement | amount

A |statement |that |is |believed |to |be |true |when |made, |which |my |prove |to |be |false. |- |correct | answer |-Representation A |statement |that |is |guaranteed |to |be |correct: |- |correct |answer |-Warranty When |can |an |insured |cancel |his/her |policy? |- |correct |answer |-At |any |time. In |Florida, |how |many |days |in |advance |of |a |premium |due |date |must |an |auto |insurer |provide | notice |of |renewal |to |an |insured? |- |correct |answer |-30 |days |written |notice What |deductibles |are |subject |to |any |aircraft |physical |damages |that |differ |according |to | circumstances |surrounding |a |given |loss? |- |correct |answer |-In-flight |Ded |(greatest |amount) Not-in-Motion |(least |amount) They |apply |independently |based |on |the |actual |loss Uninsured |Motorist's |Coverage |form, |the |insured |can |request: |- |correct |answer |-Non-stacked | Coverage Stacked |Coverage UM |coverage |at |the |limits |lower |than |those |that |apply |for |liability |coverage If |a |mortgage |is |acknowledged |in |the |policy |and |the |insured |concealed |the |fact |that |a |hazard | exists |to |the |insurance |company, |would |the |mortgage |have |a |right |to |recover |its |full |loan |value? |- |correct |answer |-Yes Under |Florida |Comparative |Negligence |law |how |much |would |one |be |able |to |recover |if |they |were | found |25% |at |fault? |- |correct |answer |-75% |(the |difference) If |a |claimant |is |under |the |influence |of |drugs |and/or |alcohol |and |is |found |to |be |50% |or |more |at | fault, |how |much |can |they |recover? |- |correct |answer |-$0. A |commercial |property |coverage |part |includes: |- |correct |answer |-Common |policy |conditions

Commercial |property |declarations One |or |more |causes |of |loss |forms When |an |insurance |adjuster |advises |an |insured |to |misrepresent |the |claim |by |suggesting |how |to | report |a |claim, |the |adjuster |should |be |charged |with: |- |correct |answer |-Unfair |Claims |Act The |"outside |premises" |policy |insuring |agreement |covers: |- |correct |answer |-Loss |of |money |and | securities |and |other |property |outside |the |premises. The |insurer |cannot |prevent |a |public |adjuster |from |meeting |with |their |client |after: |- |correct |answer |-the |insurer |has |been |notified |of |the |existence |of |a |contract DP-1 |is |basic |Dwelling |Coverage. |What |is |the |only |water |damaged |covered |under |this |form? |- | correct |answer |-Damage |caused |by |water |used |to |extinguish |a |fire In |Florida, |any |policy |that |contains |a |separate |hurricane |deductible |must |include: |- |correct |answer |-the |actual |dollar |value, |bold |print |and |notice |of |high-out-of |pocket |expense |to |you Coverages |included |under |a |commercial |packaged |policy |(CPP): |- |correct |answer |-Farm |Coverage Commercial |Crime |Coverage Commercial |GL Commercial |Property Commercial |Auto Commercial |Inland |Marine Boiler |and |Machinery Professional |Liability | Employment |Practices If |an |insured |fails |to |comply |with |the |immediate |notice |of |claim |requirements, |what |could | happen? |- |correct |answer |-The |coverage |could |be |denied

What |coverage |of |the |garage |policy |will |pay |for |physical |damage |to |a |garage |customer's |auto | regardless |of |legal |liability? |- |correct |answer |-Garage |Keepers |Direct |Coverage |Endorsement The |purpose |of |the |Florida |Citizens |Property |Insurance |Corporation |is: |- |correct |answer |-to |provide |coverage |on |dwelling |and |homeowner |risks |that |are |unable |to |obtain |coverage |in |the |standard | markets |using |standard |property |insurance |forms. If |a |property |is |eligible, |what |endorsement |can |Flood |coverage |be |purchased |under |the | Commercial |Property |Policy? |- |correct |answer |-CP | 10 | 65 If |flood |coverage |CP | 10 | 65 |exists |along |with |NFIP, |which |coverage |is |considered |excess? |- |correct | answer |-CP | 10 | 65 The |promise |by |one |party |that |is |conditioned |on |an |uncertain |event |and |where |the |value |given | by |each |party |is |unequal |is |called: |- |correct |answer |-Aleatory When |does |coinsurance |not |apply? |- |correct |answer |-When |the |insured |suffers |a |total |loss |to |the |property. In |Florida, |grounds |for |compulsory |refusal, |suspension, |or |revocation |of |an |agent's |or |adjuster's | license |or |appointment |includes: |- |correct |answer |-Material |misstatement, |misreprepresentation, |or |fraud |in |obtaining |a |license Using |the |license |to |willfully |circumvent |any |of |the |requirements |or |prohibitions |of |Florida | insurance |laws Demonstration |of |a |lack |of |fitness |or |trustworthiness |to |engage |in |business |of |insurance What |forms |the |basic |eligibility |requirements |for |all |of |the |residual |markets |in |Florida? |- |correct | answer |-The |risk |is |unable |to |find |a |market |for |the |required |coverages. When |a |business |owner |declaration |page |contains |more |than |one |named |insured, |in |case |of | cancellation, |who |receives |the |notice? |- |correct |answer |-The |first |named |insured

What |is |insured |under |the |valuable |papers |and |records |coverage |form? |- |correct |answer |-Books, | maps |and |film Property |of |Others Mortgage |& |Manuscripts Someone, |other |than |the |insured, |to |whom |the |insured |property |is |entrusted |"temporarily" |is | known |as |a: |- |correct |answer |-Bailee Name |three |claim |settlement |options: |- |correct |answer |-Repair | Replace |with |LKQ Replace |with |New When |are |non-residents |subject |to |florida's |insurance |laws |if |a |motor |vehicle |has |been |physically | present |in |florida? |- |correct |answer |-90 |days |during |the |preceding |year When |can |an |insured |assign |a |policy |to |another |policy? |- |correct |answer |-Only |with |written | consent |from |the |insurer Name |the |exclusions |under |the |DP-2 |Dwelling |form: |- |correct |answer |-Flood, |Earthquake, | Mudslides. What |is |considered |to |be |the |most |important |implied |warranty |under |a |Ocean |Marine |Policy? |- | correct |answer |-Seaworthiness |of |the |Vessel Taking |property |by |force |or |the |threat |of |force |is |defined |as: |- |correct |answer |-Robbery Requirements |that |truckers |be |financially |responsible |for |cargo |they |carry |are |imposed |by: |- | correct |answer |-State |and |Federal |Government What |is |the |standard |deductible |for |each |coverage |under |the |"emergency |flood |program"? |- | correct |answer |-$2,000.

Under |a |HO-3 |Policy, |there |is |no |coverage |for |loss |resulting |from |"earth |movement" |except |when |endorsed |using: |- |correct |answer |-Earthquake |Endorsement An |earthquake |endorsement |defines |a |single |earthquake |as |all |earthquake |shocks |within |what | period? |- |correct |answer |-72 |Hour |Period Earthquake |peril |is |defined |to |include: |- |correct |answer |-land shock |waves or |tremors |accompanied |by |volcanic |eruption Name |the |endorsement |used |on |the |dwelling |policy |to |keep |values |current |with |the |replacement | cost |of |the |buildings |(inflation |of |construction |costs) |- |correct |answer |-The |Automatic |Increase | Endorsement What |coverage |should |be |added |to |the |Business |Owners |Coverage |Form |if |the |named |insured's | employees |use |their |own |vehicles |to |run |errands |when |the |insured |does |not |have |commercial | auto |coverage? |- |correct |answer |-Non-Owned |and |Hired What |is |coverage |based |on |under |the |commercial |property |condominium |association |form? |- | correct |answer |-Association |agreement |and |bylaws Name |the |excluded |types |of |property |under |the |Commercial |Building |and |Personal |Property |Form. |- |correct |answer |-Animals |(unless |for |sale) Autos Money The |BOP | 2010 |has |extended |the |time |for |loss |of |income |under |an |act |of |civil |authority. |Was |is | the |length |of |the |time? |- |correct |answer |-Four |Weeks How |long |must |all |claim |files |be |maintained |and |available |for |open |and |closed |files |for |the | current |and |the |preceding |year? |- |correct |answer |-3 |Years

DP-3 |only |provides |damage |to |covered |property |caused |by: |- |correct |answer |-Burglars The |HO-3 |policy |limits |the |theft |of |money |to |what |amount? |- |correct |answer |-$200. In |addition |to |the |max |coverage |under |an |equipment |breakdown |protection |policy, |what |other | expenses |in |addition |to |the |limits |of |coverage |will |the |insurer |pay? |- |correct |answer |-Legal |Fees What |is |the |prime |coverage |under |flood |insurance? |- |correct |answer |-Overflow |of |inland |or |tidal | water Under |the |DP-1 |basic |form |what |is |excluded? |- |correct |answer |-war earthquake landslide Volcanic |eruption |can |be |found |on |which |type |of |policy? |- |correct |answer |-The |basic |dwelling | policy A |Scheduled |Personal |Property |endorsement |under |a |Personal |Inland |Marine |Policy |is |usually | settled |on |- |correct |answer |-ACV |or |Agreed |Mutual |Basis A |Scheduled |Personal |Property |endorsement |under |a |Personal |Inland |Marine |Policy |is |usually | issued |on: |- |correct |answer |-An |Open |Peril Which |section |explains |the |important |terms |used |throughout |the |contract? |- |correct |answer |- Definitions Under |a |dwelling |broad |or |special |form, |what |is |the |maximum |that |would |be |paid |for |"loss |of | use"? |- |correct |answer |-20% |of |the |Dwelling |Coverage Though |multiple |parties |may |be |involved |in |a |lawsuit, |the |opposing |sides |are |referred |to |as: |- | correct |answer |-Plaintiff |and |Defendant

Exclusions |under |the |theft, |disappearance |and |destruction |coverage |form. |- |correct |answer |-Fire Vandalism Accounting |Errors The |theft |disappearance |and |destruction |coverage |form |is |designed |to |cover |- |correct |answer |- Criminal |Activities |of |customer |and |others What |is |covered |by |a |SP-23 |protection |and |indemnity |policy? |- |correct |answer |-Loss |of |life, |Injury |and |illness Collision |liabilities |including |defence |costs Damage |to |docks, |buoys |and |other |structures When |a |motor |vehicle |is |sold, |transported, |or |delivered |to |a |salvage |motor |vehicle |dealer, |it |must |be |accompanied |by: |- |correct |answer |-Properly |endorsed |certificate |of |title Salvage |certificate |of |title Vehicle |certificate |of |destruction What |does |the |HO |Policy |Loss |of |Use |cover? |- |correct |answer |-ALE An |equipment |dealers |coverage |form |is |designed |to |provide |insurance |on |- |correct |answer |- Equipment |owned |by |the |insured Equipment |in |the |insured's |custody |for |servicing |or |storage Equipment |entrusted |to |the |insured |dealer |for |sale What |is |not |included |in |the |calculations |for |replacement |cost |coverage? |- |correct |answer |-(Hidden |Items) Underground |pipes Flues Wiring

Drains When |is |a |public |adjuster |in |Florida |not |Permitted |to |Solicit |an |insured |or |claimant? |- |correct | answer |-Sunday What |are |the |allowed |hours |for |a |public |adjuster |to |solicit |services? |- |correct |answer |-8am |- |8pm |M-Sat When |can |coverage |under |the |National |Flood |Insurance |Program |be |written? |- |correct |answer |- Only |with |participating |communities In |order |to |be |a |participating |community |with |NFIP, |which |guidelines |must |be |accepted? |- |correct |answer |-FEMA Under |a |dwelling |(DP-2 |or |DP-3) |policy, |what |is |the |maximum |% |that |would |be |paid |for |ALE? |- | correct |answer |-20% What |is |the |limit |of |insurance |that |applies |to |property |in |transit |in |the |BOP? |- |correct |answer |- $10, With |admitted |aircraft |liability, |what |is |not |considered |a |factor? |- |correct |answer |-Negligence An |inland |marine |coverage |which |covers |the |insured's |merchandise |held |for |sale, |such |property | that |is |sold |but |not |delivered, |customers |property |in |the |care |and |custody |of |the |insured, |and | property |being |transported |to |or |from |the |insured |is |a: |- |correct |answer |-Dealers |Form What |contains |the |basic |policy |conditions |that |apply |to |many |controlled |inland |marine |coverage? |- |correct |answer |-Commercial |Inland |Marine |Condition |Form Under |HO-3, |materials |and |supplies |to |be |used |in |the |construction, |alteration |or |repair |of |the | structure |and |kept |next |to |the |residence |premises |are |covered |only: |- |correct |answer |-If |they |are | lost |due |to |an |insured |peril.

What |percentage |is |a |HO-3, |the |limit |for |Coverage |C |- |Personal |Property |for |a |one |or |two |family | dwelling |set |at? |- |correct |answer |-50% |of |Coverage |A |unless |higher |limit |is |requested Personal |Property |- |Coverage |C |is |set |at |50% |for |which |Policy |types? |- |correct |answer |-HO-2 | HO- HO- Marine |cargo |coverage |refers |to |loose |cargo, |(e.g. |cartoons, |boxes) |that |are |stowed |directly |(or | placed |on |pallets) |in |the |ship's |hold, |is |commonly |referred |to |as: |- |correct |answer |-Break |Bulk What |coverage |is |required |to |cover |a |loss |if |a |guest |leaves |valuables |in |the |hotel |safe |and |it |is | missing |upon |return |to |retrieve? |- |correct |answer |-Guest |Property |Crime |Form Another |word |for |a |stand-alone |policy? |- |correct |answer |-Monoline |Policy What |does |improvements |and |betterment |apply |to? |- |correct |answer |-Real |Property HO-4 |is |designed |for |- |correct |answer |-Renters/Tenants |and |covers |direct |damage |to |personal | property |owned |or |used |by |an |insured |while |it |anywhere |in |the |world. When |a |vehicle |is |stolen, |transportation |expenses |are |not |paid |until |after |how |long |of |a |waiting | period? |- |correct |answer |-48 |Hours When |someone |is |acting |on |behalf |of |another |for |an |extended |period |of |time |but |without |the | express |authority |to |do |so, |the |concept |of |agency |is |called |- |correct |answer |-Ratification What |are |true |benefits |of |insurance? |- |correct |answer |-Ins. |allows |individuals |and |companies |to | undertake |activities |they |might |attempt |otherwise Total |risk |is |potentially |reduced |because |of |the |insurer's |attention |to |loss |control |

Tens |of |thousands |of |people |can |achieve |gainful |employment |in |the |industry How |much |does |Debris |Removal |Additional |Coverage |extend |to |cleanup |debris |if |there |is |no | damage? |- |correct |answer |-$5,